The Valenti Company Uses Flexible Budgeting for Cost Control

question 7

Multiple Choice

The Valenti Company uses flexible budgeting for cost control.Valenti produced 10,800 units of product during October,incurring indirect material costs of $13,000.Its master budget for the reflected indirect material costs of $180,000 at a production volume of 144,000 units.What was the flexible budget variance for the indirect material costs in October?

• A) $1,100 favorable.
• B) $1,100 unfavorable.
• C) $2,000 favorable.
• D) $500 favorable.

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Definitions:

Transcendent Form

A concept in philosophy that refers to idealized, perfect examples of various properties or entities, which exist beyond our physical and perceptual limitations.

Beauty

An aesthetic quality or experience that gives intense pleasure or deep satisfaction to the mind, often derived from sensory perceptions.

Morally

In a manner that is concerned with principles of right and wrong behavior.

Aesthetic

Pertains to the philosophical branch that deals with the nature of beauty, art, and taste, and the creation and appreciation of beauty.